Moving in together is an exciting step in any relationship, but it's also a major financial commitment. Having open and honest conversations about money before you share a home can prevent conflicts and set you up for success. Here are 10 essential money talks every couple should have before cohabitating.
Start with full financial disclosure. Share details about your income, debts, credit scores, and financial obligations. This transparency builds trust and helps you understand each other's financial starting points.
Decide how you'll divide rent/mortgage, utilities, groceries, and other shared expenses. Will you split 50/50 or proportionally based on income? Consider opening a joint account for household bills while maintaining separate personal accounts.
Discuss short-term and long-term financial goals. Do you want to save for a house, pay off debt, or travel? Understanding each other's priorities helps create a shared financial vision.
Address how existing debts (student loans, credit cards, etc.) will be handled. Will you help each other pay them down or keep debts separate? Create a plan for avoiding new debt accumulation.
Agree on how much each of you will contribute to emergency savings and other savings goals. Determine where these funds will be kept and who will manage them.
Discuss your spending styles and set guidelines for discretionary spending. Establish a threshold (e.g., $200) for when you'll consult each other before making purchases.
Create a detailed monthly budget that includes all shared and individual expenses. Review and adjust it together regularly as your situation changes.
Decide who will handle which financial tasks (paying bills, tracking expenses, filing taxes). Consider rotating responsibilities to keep both partners engaged in your finances.
Talk about retirement savings, investments, and insurance needs. If marriage is a possibility, discuss prenuptial agreements and how you'd handle finances as spouses.
While uncomfortable, it's practical to discuss what would happen financially if you split up. Consider a cohabitation agreement to protect both parties.
Having these conversations before moving in together can strengthen your relationship and set you up for financial harmony. Remember that money talks should be ongoing as your lives and circumstances evolve.